As Canada’s “Exchange for Entrepreneurs”, one of the key goals for the Canadian Securities Exchange (CSE) is to create a favourable capital formation environment for our listed companies.
The numbers to date this year demonstrate that we are making good progress towards this goal: 82 companies have completed 135 financings raising a total of $104 million. Leaving aside one monster deal done some years back by one of our companies, this is the first time that CSE-listed companies have collectively raised more than $100 million in a single calendar year. It’s particularly gratifying that we reached this milestone with more than a quarter to go.
Combined with record trading numbers, and over 50 new securities listed this year it is clear that the exchange’s message is resonating with businesses looking to the public capital markets for investment.
Here is the quarterly breakdown for funds raised for 2014 YTD as compared with 2013:
More than Just Numbers
According to James Black, VP of Listings Development “this is a great milestone for the exchange – further proving that our proposition for the Canadian capital markets is very much in-line with the needs of companies seeking to raise capital for exciting early-stage businesses.”
Among the names of companies that successfully raised additional financing this year were Pivotal Therapeutics (PVO), Helius Medical Technologies (HSM), Novo Resources Corp. (NVO), VoodooVox Inc (now UpSnap – UP) and RESAAS Services Inc (RSS).
The companies raising money on the CSE come from a broad cross-section of industries.
There are signs of life in the beaten down mining sector, with 31% of the funding for transactions having been completed in the space. In addition, the technology sector has accounted for almost half of the activity (see chart below).
Staying the Course
With trading activity and financings pushing record levels, the CSE is hitting its stride as an exchange that more and more public companies are turning to as the best option to access capital. Underpinning the shift is a combination of factors that include pricing, simplicity and service.
For many public companies, especially early stage ones, the prospect of being able to effectively allocate resources to fund company activity is appealing. As the CSE’s CEO Richard Carleton put it:
“This funding milestone is a clear indication that we are supporting companies’ capital raising needs by providing the most efficient public market in Canada for raising money. Companies raising capital on the CSE are subject to fixed, low-fees, ensuring every dollar raised flows back to their business and not to the exchange”
Going into the final stretch of 2014, the momentum for the CSE looks good in all corners of the business. Best of all, entrepreneurs are gaining access to capital and are now better able to put that capital to work driving innovation and building successful enterprises.
That is the kind of good news story that everyone enjoys hearing again and again.